The SA Auto Week this year represents a critical time to celebrate tradition and look to the future of automotive. And with its commitment to local manufacturing and its rich heritage of iconic brands, Stellantis is a strategic partner for automotive development in South Africa, as the eighth largest OEM. Construction in the Coega Special Economic Zone and historic marketing of some of its brands in this market make it important in that market.
Stellantis and SA Auto Week in South Africa
Stellantis is also succeeding in finding much success in the South Africa automotive market. The most recent news from the African continent is the participation of the Stellantis group in SA Auto Week.
SA Auto Week in South Africa is considered to be a very important event whose main objective is to bring together the major players in the auto industry both nationally and internationally. It is also a definitely key platform for networking and lobbying, in which the latest trends in the industry are discussed, as well as the latest events that the South African but also African market in general is experiencing.
This event goes a long way in many ways. As we anticipated, for networking it provides a truly unique opportunity to network with industry leaders, seek to establish new partnerships but also strengthen existing ones. In the aspect of innovation, on the other hand, the event showcases the latest technologies and solutions from the field of motoring, with a focus on sustainability and electric mobility, a topic of global interest. During SA Auto Week, the policies that govern and influence the auto industry for South Africa are also discussed, bringing government and industry face to face for a very productive conversation. Finally, the 2024 edition to be held in October is particularly important because it also celebrates the 100th anniversary of this industry sector for South Africa.
Stellantis creates value in South Africa and will become the eighth OEM to produce vehicles
As we all know, Stellantis has a legacy of historic brands that would make any automotive group in the world envious. For through brands such as Opel, Peugeot, Fiat, and Citroën, the automotive giant has brought to South Africa several decades of experience as well as an entirely innovative vision for the mobility of the future. Stellantis’ strategic plan, the Dare Forward 2030, also speaks of a rather prestigious goal for the company, namely to completely transform the concept of moving by car globally.
With these characteristics, Stellantis is thus on its way to becoming the eighth OEM to produce vehicles in South Africa. but what exactly does this mean? Meanwhile, OEM stands for “Original Equipment Manufacturer,” and this means that one is the original manufacturer of a particular vehicle. In practice, Stellantis is both the company that designs and subsequently builds a car. For the group, producing vehicles in a market such as South Africa means having the opportunity to open up and expand with a factory that will serve to assemble and produce its vehicles there.
That would bring about several positive effects, such as increasing production of the vehicles Stellantis made available in the South African market. With the establishment of the new factory, a number of jobs would automatically be created, obviously again in the automotive sector. Furthermore, the entry of Stellantis could increase the competitiveness of the South African market, which would result in the eventual lowering of prices and more choice for consumers. Finally, such an initiative would obviously bring strong support to the local economy, as local car production will go a long way toward stimulating the country’s economy, while also supporting all other companies that work in an automotive-related way.
Stellantis, opening a new Coega Special Economic Zone plant
Therefore, as explained, the Stellantis Group’s decision to open a new plant in the Coega Special Economic Zone is a very positive step forward for the entire African continent. This is a strong 3 billion Rand investment, which, in addition to creating numerous jobs, helps proclaim the Stellantis group as a major player in the industry for the entire continent.
Production at the Coega plant will begin with the production of the 1-ton Peugeot Landtrek brand pickup, although this decrees only the initial phase of the project. In fact, Stellantis aims to achieve a 22 percent market share in the African continent, along with the Middle East. Thus, it is assumed that the automotive sector in these continents is expected to grow sharply in the coming years.
Therefore, Stellantis’ participation in such an important event as SA Auto Week, gives the company the opportunity to be able to share its ideas with direct stakeholders in the relevant sector. The focus of the strategy will always be on the most important issues we are facing nowadays, namely sustainability, digitization and connected mobility.